This paper examines the role of signaling and screening in labor markets. It explores how employers use signaling and screening to assess the quality of potential employees and how these processes affect the labor market. It also looks at how signaling and screening can be used to create an efficient labor market, as well as
From Wikipedia
Screening in economics refers to a strategy of combating adverse selection – one of the potential decision-making complications in cases of asymmetric information – by the agent(s) with less information.